The smart stock ticker is more than just a gimmick. Whether it’s WOOF, EAT, or even the initials of a former president, a memorable stock symbol can help companies attract investors.
A 2006 study by psychologists at Princeton University found that stocks with easy-to-pronounce stock symbols tend to perform better in the days immediately after trading begins. Another from Pomona College in 2019 verified previous research that found that smart indicators tend to perform better, in part because they are more memorable for investors.
“There is evidence that having a company name and ticker that investors like, and that are easy to manipulate, is valuable,” says Russell Jim, assistant professor of finance at the University of Kentucky. “It generates more trading in the company, which improves stock liquidity and also leads to broader ownership and, ultimately, higher valuation ratios.”
One example of a stock ticker brand could hit the market next week. The parent company of Truth Social, the social media platform launched by Donald Trump after he was fired from Facebook and Twitter following the January 6 Capitol attack, may begin trading on the stock market.
Indicator symbol? DJT, by Donald J. Trump.
Here are some of the most creative stock market icons in circulation today.
Woof: Petco Health and Wellness has been trading under the ticker “WOOF” since its IPO in 2021, amid a pet boom fueled by lockdowns.
Life size: Southwest Airlines has been closely associated with the word “love” since its inception in 1971, when it announced its first service from Love Field in Dallas. The carrier’s marketing team built on the name, selling tickets to ride in “LUV seats” and offering “LUV bites” and “LUV shots” to customers.
Trump’s financial problems:Can the Truth Social deal save it from its cash crunch? maybe.
handle: Molson Coors Beverage, the parent company of Coors, Blue Moon, Keystone and other adult beverages, tapped into its brewery roots when choosing its ticker symbol.
He eats: This belongs to Brinker International. If the name doesn’t grab your attention, you may be more familiar with the restaurant brands: Chili’s Grill & Bar and Maggiano’s Little Italy.
cake: What better company to own a CAKE bar than The Cheesecake Factory?
Trump’s social truth will be made public:The social media platform’s parent company wins merger vote
fizz: National Beverage’s portfolio includes LaCroix and various carbonated waters, juices, energy drinks and other soft drinks.
He plays: Dave & Buster’s locations feature restaurants and bars, but the company emphasizes its video game offerings with its ticker symbol.
Zeus: The ancient Greek god is a perfect fit for Olympic Steel Inc., an Ohio-based metal service center.
Hazar: Cedar Fair, a theme park operator, notes that it has “cornered the market on fun” with its symbol.
pig: The nickname for Harley-Davidson motorcycles goes back nearly a century. Ray Weishaar, a member of the company’s factory racing team in the early 1900s, adopted a piglet named Johnny. The pet became the team’s mascot and would be carried in victory laps. Harley Davidson bikes would become known as Pigs.
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